Hello,
I am an actress and singer and I am trying to figure out how to input my expenses on my Federal Tax return. Things such as: Flight & Hotel stays for auditions, Acting Classes, Singing Lessons, and other things. How do you enter them on TurboTax Deluxe?
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Are you filing Schedule C for self employment or 1099NEC income?
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.
How to enter income from Self Employment
Hi @VolvoGirl
Thank you for your response! I wasn't filing out a Schedule C for Self-Employment, but is that how to enter those types of expenses? I guess I'm not 100% sure what these expenses are classified as. I have TurboTax Deluxe via a download for Mac.
Forget about the expenses for a minute. How are you reporting the income? Did you get W2 or 1099NEC for the income? You can no longer deduct expenses for W2 income.
No, I didn't receive a W-2 for 2021, but I did receive a 1099-NEC.
Ok good. That is self employment and you need to fill out Schedule C . Then you can deduct your expenses.
Fill out Schedule C
Go to Federal Taxes Tab
Wages and Income
Choose Jump to Full List -or I'll choose what I work on
Then scroll way down to Business Items
Then click EDIT by the business name and the next screen should be a list of topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.
Under Business Expenses, Click Start or Update by Other common business expenses. You should see the list of expenses and amounts you entered.
Then click the start or update button by the expense you want to add or edit.
Have you started filling out Schedule C? Did you get 1099NEC forms for all your income or did you get some income without a form?
Here's some Schedule C info you need to fill out.
You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk. You will need to enter a 6 digit business code. Here are the IRS instructions for Schedule C. Business codes start on page 18.
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Oh okay, thank you for those step-by-step instructions! I haven't started filing out a Schedule-C, and no I didn't receive a 1099-NEC for all of the expenses. The 1099-NEC I received was for one job. So that make me wonder, do these same instructions apply if that 1099-NEC I received doesn't pertain to these expenses I want to enter?
To enter your 1099NEC and cash income.....You can enter it all as Cash or General. You don't need to enter the actual 1099NEC. Just enter the total income as Cash. Only the total goes to Schedule C line 1. You fill out 1 Schedule C for all your acting income and expenses.
Here's more info, some I already posted.
You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.
You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
Oh okay, thank you! I did want to mention that I did already enter the 1099-NEC since the pay was over the amount you mentioned. But to clarify I need fill out a separate Schedule C for my expenses (ones that do not pertain to that 1099-NEC), correct?
No not a separate Schedule C. All your income and expenses go on the same Schedule C . It's all for your self employment acting. It's your own business. You are in business for yourself. Use your own info. The people or company that pays you is your customer or client. You are considered to have your own business for it. YOU are the business.
Oh okay, that makes sense! Thank you @VolvoGirl for your help, I really appreciate it!
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